Economics and similar, for the sleep-deprived

A subtle change has been made to the comments links, so they no longer pop up. Does this in any way help with the problem about comments not appearing on permalinked posts, readers?

Update: seemingly not

Update: Oh yeah!

Tuesday, June 02, 2009

The past is a different country ...

Am I really the first UK commentator on the expenses scandal to think of excerpting a few of the more bracing bits of "Plunkitt of Tammany Hall"?

Now, a few words on the general subject of the so called shame of cities. I don’t believe that the government of our cities is any worse, in proportion to opportunities, than it was fifty years ago. I’ll explain what I mean by “in proportion to opportunities.” A half a century ago, our cities were small and poor. There wasn’t many temptations lyin’ around for politicians. There was hardly anything to steal, and hardly any opportunities for even honest graft. A city could count its money every night before goin’ to bed, and if three cents was missin’, all the fire bells would be rung. What credit was there in bein’ honest under them circumstances’? It makes me tired to hear of old codgers back in the thirties or forties boastin’ that they retired from politics without a dollar except what they earned in their profession or business. If they lived today, with all the existin’ opportunities, they would be just the same as twentieth-century politicians. There ain’t any more honest people in the world just now than the convicts in Sing Sing. Not one of them steals anything. Why? Because they can’t. See the application?

Understand, I ain’t defendin’ politicians of today who steal. The politician who steals is worse than a thief. He is a fool. With the grand opportunities all around for the man with a political pull, there’s no excuse for stealin’ a cent. The point I want to make is that if there is some stealin’ in politics, it don’t mean that the politicians of 1905 are, as a class, worse than them of 1835. It just means that the old-timers had nothin’ to steal, while the politicians now are surrounded by all kinds of temptations and some of them naturally – the fool ones – buck up against the penal code.

[...]

For instance, the city is repavin' a street and has several hundred thousand old granite blocks to sell. I am on hand to buy, and I know just what they are worth.

How? Never mind that. I had a sort of monopoly of this business for a while, but once a newspaper tried to do me. It got some outside men to come over from Brooklyn and New Jersey to bid against me.

Was I done? Not much. I went to each of the men and said: "How many of these 250,000 stories do you want?" One said 20,000, and another wanted 15,000, and other wanted 10,000. I said: "All right, let me bid for the lot, and I'll give each of you all you want for nothin'."

They agreed, of course. Then the auctioneer yelled: "How much am I bid for these 250,000 fine pavin' stones?"

He found the bid was real enough. My rivals stood silent. I got the lot for $2.50 and gave them their share. That's how the attempt to do Plunkitt ended, and that's how all such attempts end.

I've told you how I got rich by honest graft. Now, let me tell you that most politicians who are accused of robbin' the city get rich the same way.

They didn't steal a dollar from the city treasury. They just seen their opportunities and took them. That is why, when a reform administration comes in and spends a half million dollars in tryin' to find the public robberies they talked about in the campaign, they don't find them.

The books are always all right. The money in the city treasury is all right. Everything is all right. All they can show is that the Tammany heads of departments looked after their friends, within the law, and gave them what opportunities they could to make honest graft. Now, let me tell you that’s never goin' to hurt Tammany with the people. Every good man looks after his friends, and any man who doesn't isn't likely to be popular. If I have a good thing to hand out in private life, I give it to a friend – Why shouldn't I do the same in public life?

Another kind of honest graft. Tammany has raised a good many salaries. There was an awful howl by the reformers, but don't you know that Tammany gains ten votes for every one it lost by salary raisin'?

The Wall Street banker thinks it shameful to raise a department clerk’s salary from $1500 to $1800 a year, but every man who draws a salary himself says: "That’s all right. I wish it was me." And he feels very much like votin' the Tammany ticket on election day, just out of sympathy.

Tammany was beat in 1901 because the people were deceived into believin' that it worked dishonest graft. They didn’t draw a distinction between dishonest and honest graft, but they saw that some Tammany men grew rich, and supposed they had been robbin' the city treasury or levyin' blackmail on disorderly houses, or workin' in with the gamblers and lawbreakers.

As a matter of policy, if nothing else, why should the Tammany leaders go into such dirty business, when there is so much honest graft lyin' around when they are in power? Did you ever consider that?

Now, in conclusion, I want to say that I don't own a dishonest dollar. If my worst enemy was given the job of writin' my epitaph when I'm gone, he couldn't do more than write:

"George W. Plunkitt. He Seen His Opportunities, and He Took 'Em."

Also: This extract confused William Riordan, the author of "Plunkitt", but it's crystal clear to me:

One of the fixed duties of a Tammany district leader is to give two outings every summer, one for the men of his district and the other for the women and children, and a beefsteak dinner and a ball every winter. The scene of the outings is, usually, one of the groves along the Sound.

The ambition of the district leader on these occasions is to demonstrate that his men have broken all records in the matter of eating and drinking. He gives out the exact number of pounds of beef, poultry, butter, etc., that they have consumed and professes to know how many potatoes and ears of corn have been served.

According to his figures, the average eating record of each man at the outing is about ten pounds of beef, two or three chickens, a pound of butter, a half peck of potatoes, and two dozen ears of corn. The drinking records, as given out, are still more phenomenal. For some reason, not yet explained, the district leader thinks that his popularity will be greatly increased if he can show that his followers can eat and drink more than the followers of any other district leader.

The same idea governs the beefsteak dinners in the winter. It matters not what sort of steak is served or how it is cooked; the district leader considers only the question of quantity, and when he excels all others in this particular, he feels, somehow, that he is a bigger man and deserves more patronage than his associates in the Tammany Executive Committee.

The amount of food eaten is of course a noisy indicator of the size of a politician's support, but remember that we are dealing with a group of people here who were past master of faking headcounts or ballots. Of course they wouldn't trust each other on a simple ballot, but wasted or surplus steak and potatoes are much harder to conceal than stuffed ballot boxes (or rather, as the estimate of ten pounds of beefsteak a head shows, there's a limit to how hard you can kite the food consumption on outing). It's a classic tradeoff in econometrics - preferring a less efficient estimator to a biased one.5 comments this item posted by the management 6/02/2009 03:06:00 AM